top of page
All Posts


The True Cost of Business Loans: Straight-Line Interest vs Declining Balance Interest
Understanding the cost of financing is crucial for small and medium enterprises (SMEs). Many businesses rely on loans to fuel growth, but the method used to calculate interest can significantly affect the total cost. The straight-line interest method may seem simple, but the costs are much higher compared to the declining balance method. This article will break down both methods, showcase the benefits of the declining balance approach, and provide a comparison to help you mak
149 Financial Services
Oct 234 min read
Â
Â
Â
bottom of page
